Difference Between Udyog Aadhar and Udyam Registration
Category: Accounting and Bookkeeping, Posted on: 08/07/2025 , Posted By: CA Gaurav Saboo
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Difference Between Udyog Aadhar and Udyam Registration

Udyog Aadhar and Udyam Registration (UR) are two government initiatives launched to support and promote Micro, Small, and Medium Enterprises (MSMEs) in India. While both aim to empower MSMEs by simplifying access to various government benefits, they differ significantly in structure and execution.


What is Udyog Aadhar?

Launched in September 2015 by the Ministry of MSME, Udyog Aadhar—also referred to as the Udyog Aadhar Memorandum (UAM)—was designed to assign a unique identification number to MSMEs. This initiative consolidated the earlier dual-step registration system of Entrepreneur Memorandum-I (EM-I) and Entrepreneur Memorandum-II (EM-II) into a single registration process.

To register under Udyog Aadhar, businesses had to provide their PAN, bank details, and other business information. Although it simplified the earlier process, it still required a considerable amount of time and documentation.


What is Udyam Registration?

In July 2020, the government introduced Udyam Registration, replacing Udyog Aadhar with a more streamlined and user-friendly platform. Udyam Registration is based on a self-declaration system, which allows businesses to register directly without the need for consultants or intermediaries.

This digital platform issues a Udyam Registration Number (URN), enabling MSMEs to avail of government schemes and incentives such as subsidies, collateral-free loans, and tax benefits.


Key Differences Between Udyog Aadhar and Udyam Registration

Feature

Udyog Aadhar

Udyam Registration

Launch Year

2015

2020

Registration Type

Government-assisted

Self-declaration

Process Complexity

Moderate (required multiple details)

Simple (one-page form)

Documentation

PAN, bank details, other info

Basic business info; linked with PAN & GST

Registration Fee

Free

Free

Certificate Format

Basic PDF

Soft-copy with QR code for instant verification

Platform Usability

Less streamlined

Single-window, user-friendly interface


Conclusion

Udyam Registration has now completely replaced Udyog Aadhar as the official MSME registration process in India. It offers a faster, simpler, and more efficient system for businesses to register and access numerous benefits provided by the government. The inclusion of features like a one-step form, QR-coded certificate, and online verification has made Udyam Registration more secure and accessible. MSMEs can now enjoy improved access to growth opportunities, financial aid, and policy support with greater ease.


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